Trump’s Tariffs Expected to Cost Apple an Additional $1.1 Billion

Apple has spent nearly $1 billion paying tariffs already, and expects to pay even more next quarter, primarily to China.

As reported by The Verge, Apple’s CEO Tim Cook detailed how tariffs impacted the company last quarter. During the earnings call, Cook said that Apple spent around $800 million on tariffs last quarter, which, while a considerable amount of money, is slightly less than Apple expected.

During its last earnings call, Apple estimated it would dole out $900 million in tariffs. However, as the Trump administration has waffled on many tariffs, including tariffs on China, Apple’s bill subverted expectations.

However, Cook says that he expects current and expected tariffs to cost Apple $1.1 billion for the current quarter, which ends in September. Apple’s revenue forecast has increased dramatically, but costs will rise in tandem as the company sells more products.

Apple, like Canon, saw a spike in product sales as people feared ever-rising tariffs. This fear-driven spending spree helped Apple beat quarterly sales expectations by the largest percentage over the past four years, Reuters reports.

Even with anticipated higher costs because of tariffs, Apple still told investors it is on pace to grow. Apple’s Chief Financial Officer, Kevan Parekh, thinks Apple’s revenue could grow this quarter by “mid to high single digits,” which would best analyst expectations of just over 3% growth.

Following the generally upbeat earnings call, Apple’s stock rose, although it is down slightly so far today. It has been a challenging year for Apple on the stock market, as the company’s market cap peaked at $3.86 trillion on December 27, 2024, before tumbling throughout much of 2025. Apple’s market cap is currently at $3.12 trillion, and its share price is still nearly $40 off its year-to-date high.

Apple’s global production strategy, which relies heavily upon manufacturing in China, India, and Vietnam, has come under increasing threat during President Trump’s second term, with Trump threatening Apple specifically if the company does not move more production to the United States.

Cook, like most CEOs in America, also noted during the earnings call that Apple faces significant uncertainty concerning tariffs. It’s challenging to do business when costs are unpredictable from day to day.

Image credits: Header photo licensed via Depositphotos.